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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3561 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 3561
To amend the Truth in Lending Act and the Consumer Financial Protection
Act of 2010 to apply certain protections and oversight to buy now, pay
later loans, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 18, 2025
Mr. Reed (for himself, Mr. Van Hollen, Mr. Blumenthal, and Mrs.
Gillibrand) introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Truth in Lending Act and the Consumer Financial Protection
Act of 2010 to apply certain protections and oversight to buy now, pay
later loans, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Buy Now, Pay Later Protection Act of
2025''.
SEC. 2. APPLICATION OF THE TRUTH IN LENDING ACT TO BUY NOW PAY LATER
LOANS.
(a) In General.--The Truth in Lending Act (15 U.S.C. 1601 et seq.)
is amended--
(1) in section 103 (15 U.S.C. 1602), by adding at the end
the following:
``(ff) Buy Now, Pay Later Loan.--The term `buy now, pay later loan'
means a closed-end consumer loan for a retail transaction that--
``(1) is repaid in not more than 4 interest-free
installments; and
``(2) does not impose a finance charge.'';
(2) in section 127 (15 U.S.C. 1637)--
(A) in subsection (a), by striking ``under an open
end consumer credit plan'' and inserting ``under an
open end consumer credit plan or a buy now, pay later
loan'' each place it occurs; and
(B) in subsection (b), by striking ``under an open
end consumer credit plan'' and inserting ``under an
open end consumer credit plan or a buy now, pay later
loan'' each place it occurs;
(3) in section 170 (15 U.S.C. 1666i)--
(A) in the section heading, by striking ``rights of
credit card customers.'' and inserting ``rights of
credit card customers and buy now, pay later loan
customers.'';
(B) in subsection (a)--
(i) by striking ``a card issuer who has
issued a credit card to a cardholder pursuant
to an open end consumer credit plan'' and
inserting ``a card issuer who has issued a
credit card to a cardholder pursuant to an open
end consumer credit plan or a creditor who has
provided a buy now, pay later loan to a
consumer'';
(ii) by striking ``in which the credit
card'' and inserting ``in which the credit card
or buy now, pay later loan'';
(iii) by striking ``honoring the credit
card'' and inserting ``honoring the credit card
or buy now, pay later loan'' each place it
occurs;
(iv) by striking ``provided by the
cardholder'' and inserting ``provided by the
cardholder or consumer'';
(v) by striking ``defenses against a card
issuer'' and inserting ``defenses against a
card issuer or creditor'';
(vi) by striking ``is the same person as
the card issuer'' and inserting ``is the same
person as the card issuer or creditor'';
(vii) by striking ``is controlled by the
card issuer,'' and inserting ``is controlled by
the card issuer or creditor,'';
(viii) by striking ``common control with
the card issuer'' and inserting ``common
control with the card issuer or creditor'';
(ix) by striking ``in the card issuer's
products'' and inserting ``in the card issuer's
or creditor's products'';
(x) by striking ``by the card issuer in
which'' and inserting ``by the card issuer or
creditor in which''; and
(xi) by striking ``using the credit card
issued by the card issuer'' and inserting
``using the credit card issued by the card
issuer or the buy now, pay later loan provided
by the creditor''; and
(C) in subsection (b)--
(i) by striking ``asserted by the
cardholder'' and inserting ``asserted by the
cardholder or consumer'';
(ii) by striking ``at the time the
cardholder first notifies the card issuer or
the person honoring the credit card of such
claim or defense'' and inserting ``at the time
the cardholder or consumer first notifies the
card issuer or creditor or the person honoring
the credit card or buy now, pay later loan of
such claim or defense''; and
(iii) by striking ``the cardholder's
account'' and inserting ``the cardholder's
account or the consumer's buy now, pay later
loan account'';
(4) in section 161 (15 U.S.C. 1666)--
(A) in subsection (a), in the matter preceding
paragraph (1), by striking ``in connection with an
extension of consumer credit,'' and inserting ``in
connection with an extension of consumer credit,
including a buy now, pay later loan,''; and
(B) in subsection (d), by striking ``an open end
consumer credit plan'' and inserting ``an open end
consumer credit plan or a buy now, pay later loan'';
and
(5) in section 171(a) (15 U.S.C. 1666i-1), by striking ``In
the case of any credit card account under an open end consumer
credit plan'' and inserting ``In the case of any credit card
account under an open end consumer credit plan or buy now, pay
later loan''.
(b) Rulemaking.--Not later than 1 year after the date of enactment
of this Act, the Consumer Financial Protection Bureau shall issue such
rules as the Bureau determines necessary to carry out the amendments
made by subsection (a).
SEC. 3. FEDERAL SUPERVISION OF BUY NOW, PAY LATER LOAN LENDERS.
Section 1024(a)(1) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5514(a)(1)) is amended--
(1) in subparagraph (D), by striking ``; or'' and inserting
a semicolon;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end:
``(F) offers or provides to a consumer a buy now,
pay later loan, as defined in section 103 of the Truth
in Lending Act (15 U.S.C. 1602).''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S8923)
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